Staring At Massive MTM Losses - What Should I do Now?

[TraderDude]

I find that smartcat is neither a kid nor a new guy in the markets. He has 12 years of market experience, has deep pockets, he is prepared to pay the tution fees to the market....and I am sure he will manage his position well.

Smart_trade

Of course he is..that's why he calls himself smartcat...:rofl:

btw..if smartcat is a serious person...above statement is a joke..pls don't take it the wrong way..

 

[smartcat]

It was just a harmless jibe to lighten up the gloom and doom a little, bro. Not meant to aggravate your predicament in anyway.

Don't worry - I laughed loudly when I read that too!

A dividend drinking cat trying to eat options hmmmm
You are already doing what most here consider unfashionable or untenable (by living of dividends and debt instruments). Like you tweaked dividend yeilding strategy to your personality you will have to do the same with options.

Good advice that one. Maybe I should try my hand with some conservative options strategies to see if I find long term success there.

There are two reasons why I entered Options trading -

1) It would be nice to have extra income, especially when the interest rates continue to be low for a long time or when we enter a multi-year bear market.

2) (Stock Dividend yield + debt instruments) investment strategy is so dull & unexciting, I'd probably die of boredom one day! Options trading gives me something to do, while hopefully taking care of extra income part too.

But this is too much excitement - super profits in Feb, super duper losses in March - I'd like to see the excitement levels go down a notch or two!

I was wondering since you are not betting for black swan events, what was your initial opinoin regarding stop loss on the whole trading option business. I was asking because you have your own stop loss method in investing.

I'm afraid I don't have a proper stop loss plan yet. Finding the right stop loss point is still a work-in-progress for me. I guess this will take some time to learn.

 

[DanPickUp]

He has 12 years of market experience, has deep pockets, he is prepared to pay the tuition fees to the market....and I am sure he will manage his position well.

Smart_trade

ST

So what? Common, that is not what you want to tell with that post, isn't it?

First have deep pockets and then do it.

First learn, then try with little money and if you understand what you do then go big.

DanPickUp

 

[timepass]

One can trade minifty options too.

 

[traderjaya]

2) (Stock Dividend yield + debt instruments) investment strategy is so dull & unexciting, I'd probably die of boredom one day! Options trading gives me something to do, while hopefully taking care of extra income part too.

But this is too much excitement - super profits in Feb, super duper losses in March - I'd like to see the excitement levels go down a notch or two!

.

SmartCat,

Doing stuff for excitement is like gambling. Wrong approach. My humble opinion.

 

[Smart_trade]

ST

So what? Common, that is not what you want to tell with that post, isn't it?

First have deep pockets and then do it.

First learn, then try with little money and if you understand what you do then go big.

DanPickUp

Dan,

That post just meant that I would have felt really bad and concerned if some new guy had got frozen and stuckup with the loosing positions. No one has so deep pockets so as to trade in the markets without a stoploss.....( unless of course he is son-in-law of Sultan of Brunei).

Smartcat also is enjoying the roller coaster ride on profits and losses and market is giving him exactly what he wants..."excitement"....

Smart_trade

 

[sanjosedesi]

Don't worry - I laughed loudly when I read that too!

btw, if you scout other threads, eagle is the best ... comic relief.

 

[trade4putuval]

Dan,

That post just meant that I would have felt really bad and concerned if some new guy had got frozen and stuckup with the loosing positions. No one has so deep pockets so as to trade in the markets without a stoploss.....( unless of course he is son-in-law of Sultan of Brunei).

Smartcat also is enjoying the roller coaster ride on profits and losses and market is giving him exactly what he wants..."excitement"....

Smart_trade

Wow you said it! This guy is doing the same thing we all must have done once during the beginner phase (of Derivatives)! Derivatives pump adrenaline into your blood till it dies out and you start choking and gets addicted to it.

So all in all, I see this guy's next 2 years as a total failure till he has to close his account or he starts thinking rationally and begin to learn how to trade! I have already seen lot of my friends thinking like him and now they are back to their services where they are saving their salary through FDs ( and some are busy saving their marriages )!

Well FYI I am also not a smart or cent percent profitable trader, you can see my signature for my history too

I can see some contributors trying their best to pull this guy out of the deep mess he is already in! My cheers to these guys :clap:!! You all got a wonderful future because you are doing a noble thing by saving one more guy from this dangerous pit!:thumb: (Contrary to the story of a deaf donkey who fell into a well, and thought the people around the well were encouraging it to climb out of the well, while the people were hurling abuses at it for trying to get out of the well!)

 

[gunsho]

Well FYI I am also not a smart or cent percent profitable trader, you can see my signature for my history too

Nice signature . You might want to change the last line as "2010 - Current". I can't see your level in 2012 . Just kidding.

 

[trade4putuval]

Nice signature . You might want to change the last line as "2010 - Current". I can't see your level in 2012 . Just kidding.

That's a valid advice! Thanks for bringing it to my notice :thumb:

Check my signature now!